APPLIED REVIEWER

“The Hospitality and Tourism Industry”

“Common Business Tools and Technologies Used in Hospitality and Tourism
Businesses”
The Hospitality Industry - This industry supplies a range of services ranging from travel
arrangements, accommodation facilities, food & beverages to leisure activities.
“Hospitality” - the cheerful welcoming of people, who may be known or may be strangers.
The Tourism Industry - refers to all activity related to the short-term movement of people
to locations away from where they usually reside.
Differences between the Hospitality Industry and the Tourism Industry
travel or tourism industry is concerned with services for people who have traveled away
from their usual place of residence, for a relatively short period of time.
The hospitality industry is concerned with services related to leisure and customer
satisfaction.
Relationship between the Hospitality Industry and the Tourism Industry
The hospitality industry is the supplier of services for tourism
Sectors within the Hospitality and Tourism Industry
The accommodation sector of the hospitality industry is concerned with providing
customers with a place to stay, on a temporary basis.
Ex.
1.1 Bed & Breakfasts
1.2 Hotels
1.3 Motels
1.4 Hostels
1.5 Resorts
1.6 Serviced Apartments
1.7 Time-Sharing
Food and Beverage - food and drinks are necessities, most food and drinks services also
fall under the hospitality industry umbrella, due to the fact that they offer people a way of
spending their leisure time and disposable income, as well as an opportunity to socialize
and enjoy an experience.
2.1 Restaurant
2.2 Catering
2.3 Bars and Cafes
2.4 Nightclubs
2.5 Tea and Coffee Shops
Travel and Tourism - important to understand that the hospitality and travel industries
are closely linked.
3.1 Travel Agents
3.2 Tour Operators
3.3 Online Travel Agencies (OTAs)
3.4 Cruises
The transportation sector - is concerned with helping tourists to get where they need to
go, via the provision of transport. This may include providing them with the means to get to
their intended holiday destination in the first place but may also include assisting them
with getting around after they arrive at their destination.
Entertainment - some tourists travel to new locations in pursuit of entertainment. Such
travelers may be drawn to entertainment options that are not available in their home
location, or they may simply require more general entertainment, which would be
accessible almost anywhere in the world, as part of their trip.
5.1 Casino
5.2 Tourist Information
5.3 Shopping Centers
5.4 Tourist Guides and Tours
5.5 Theaters/ Concerts
5.6 Theme Parks
Technology in the Hospitality and Tourism Industry
Smart technology is changing the way we travel, and several industries are impacted by
the technological revolution, among them the hospitality industry. Today’s competitive
hospitality market requires organizations to use advanced technology innovations to
ensure guest satisfaction. The key pattern of every technology-based service should be
to enhance the guest experience by offering convenience.
Seven Latest Technology Trends in the Hospitality and Tourism Industry
Recognition Technology- is one of the most important emerging tech trends in general,
but its potential uses in the hospitality industry are especially interesting. In particular,
biometrics is being used to usher in a new age of seamless authentications, and this could
benefit hotel processes and customer purchases.
Robots- Another exciting tech trend has been the emergence of robots and many
hospitality companies are putting them to good use already. Perhaps the most famous
example of this is the Hilton robot concierge ‘Connie’, which uses speech recognition and AI
to respond to queries from customers and intelligently learn from interactions.
Chatbots & Artificial Intelligence - In the modern age, customers expect to be able to
interact with hospitality companies across a variety of digital channels and receive rapid
responses. Of course, actually having staff monitoring all of those channels and delivering
swift responses can be difficult, if not impossible, which is where chatbots and AI come in.
Internet of Things (IoT) - Another technological trend within hospitality management is
the ‘Internet of Things, or IoT, which involves extending internet connectivity to everyday
objects, devices, and appliances. These devices can then collect data and communicate or
interact over the internet, turning previously unintelligent devices into ‘smart’ devices,
which are often semi or fully autonomous.
Big Data – Data collection has grown rapidly across almost all industries but can be used to
great effect by hospitality businesses to provide more personalized experiences. As an
example, it could be used by travel agents to make intelligent destination
recommendations, based on age, gender, budget, previous locations visited, and so on.
Virtual Reality - Virtual reality has been one of the most talked-about technology trends of
recent years, and its uses within the hospitality industry are almost endless, due to its
capacity to place customers in virtual settings. This can be used everywhere from the
booking stage of the customer journey to the hotel stay itself.
Augmented Reality - Finally, augmented reality has exploded in a similar way to VR
technology but is even more accessible; typically requiring little more than access to a
smartphone and the internet. Unlike VR, which places users in a digital environment,
augmented reality is about enhancing the real-world environment through information
overlays.
 “Information Technology In The Hospitality And Tourism Industry”
“Trends And Issues In Information Technology”
Impacts of Technology on the Day-to-Day Business Operations of Hospitality and
Tourism Businesses
Tourism and hospitality industries are often defined as a system of innovation and
production systems. Technology has played an important role in achieving economic
growth by generating an economy for travelers to travel. The expansion and recruitment of
air travel as travelers to different locations is an important technology contribution to the
tourism and tourism industry. The development and advancement of information
technology have had a huge impact on tourism.
The development and advancement of information technology have had a major impact on
tourism. Internet technology is important as it can drive security and effectiveness. This in
turn helps airlines to reduce costs and reach customers by increasing their reach. The
unwanted Internet use of the internet has created some conditions that have been a game-
changer in both beneficial and disruptive ways to modern travel agencies.
Technology in Hospitality and Tourism Promotion and Marketing
Use different platforms. Digital marketing tools include websites, email, Facebook,
Instagram, Twitter, Youtube, etc. Mix and match the different platforms and use the
appropriate tool to catch your target customers, whether they are millennials who want to
travel every month or the family that saves to travel comfortably once a year.
Tapping into an increasingly international market using data. Merchants are looking
to global e-commerce solutions such as Shopify Plus that can handle the demands of an
international market from one centralized location — without the need to invest in costly
custom development. International delivery logistics, currencies and exchange rates, and
country-specific seasonal trends are just a few of the points e-commerce merchants expect
to be able to resolve from one centralized platform — often bringing in sales data from
channels like Walmart and Amazon into one data dashboard.
Virtual reality brings the experience to the customer. Virtual and augmented reality is
fast becoming a normal part of everyday life, most noticeably in e-commerce. It’s a popular
app that drives e-commerce by letting customers sample products virtually before they
buy, and the same can be applied to the hospitality industry too. Many hotels now let
customers take a virtual tour of their building right there on the hotel’s website. The Thai
hotel and resort chain Amari, for example, offers virtual tours of all its premises, including
360° panoramic views of its lobbies, exterior, and hotel rooms.
Technology in Providing an Enhanced Customer Choice
Mobile Loyalty Apps
Technology brings the concept of loyalty cards to contemporary society by
providing loyalty applications for smartphones. These apps are free for customers to use
and available for iOS and Android devices alike. Spending a little time to set up a loyalty
application can pay huge dividends through repeat customers and increased satisfaction.
Customer Relationship Management
For businesses that are serious about tracking their valuable customers, though,
more advanced programs can give customers interactive access to create their own
requests, track the status of those requests, and submit questions and comments
electronically. Some even include online forums that allow customers to interact with each
other as well as customer service representatives. Any business, large or small, can benefit
from more efficient customer relationship management.
Easy Payment Options
Many small businesses in particular find themselves losing business because they
take cash only. In today’s society, consumers often prefer not to carry much if any cash in
their wallets, doing business with credit and debit cards instead.
Self-Help
Some businesses benefit greatly from more advanced self-service technology, such
as fully automated kiosks. Any automated system should be accompanied by some source
of feedback, such as a web form that asks customers whether they found the website
helpful and whether they have any suggestions for improvement.
Challenges in Service as a Result of Technology
Interoperability of Hotel Technology Systems
The inoperability of hotel technologies can impose unwanted restrictions on the
service delivery process. Loss of revenue is just one of many repercussions hotels can face
due to unorganized technology infrastructures. Inoperability also affects the guest
experience, creating conflicts and causing inconvenience that contradicts the service
delivery promise, especially in branded franchise hotels.
Data Management
As the amount of data grows within hotel databases, the responsibility of back-office
management is quadrupled. Growing concerns over data management can only be
addressed through leading-edge technology infrastructures. Authorization for data access,
network & database security, and centralized database management are major concerns
for hotels in the coming age.
Security & Privacy
When delivering highly personalized services, hotels have to track guest
preferences, location information, and activity. This gives rise to the very essential and very
complex problem of storage and protection of guest data. Several news outlets and
hospitality professionals have already identified that hospitality companies are one of the
most susceptible to data breaches.
Responsiveness
Hotel properties under professional technology management care and those with
A.I.-powered reporting systems quickly respond to repair & maintenance tasks. IoT
technology including sensors and mini-computers is being actively implemented to identify
issues as they occur. A responsive hotel tech infrastructure demands stronger
resources, simpler network mapping, and seamless synchronization with hotel back-office
systems.
Advantages of Technology in the Travel Industry
Technology has given more environmentally, friendly and less time-consuming travel. In
case you go, with the extremely valuable help of innovation, travel can turn into a lot of eco-
companion. Those days are gone, when there was a need to print boarding passes, airline
tickets, or hotel reservations. On account of mobile check-ins, online reservations, and e-
tickets, we don’t need to travel with the documents now and can save a lot of paper. Aside
from this, online reservations and appointments are helping to consider that there is no
line to get tickets.
Saving a lot of time by minimizing the packaging routine with the help of technology. These
days, innovation is attempting to crush most jobs and functions into tiny gadgets. We never
again need an iPod to tune in to music, we simply need an iTunes or Spotify account and we
can stream music on the go.
Surpassing the barriers of language. In the recent past, there was a need to carry a
converter or a phrasebook to the location where we are going. In today’s technological
world, all that you need is a cell phone and the help of applications like Translate or Google
Translate.
One-click and book all. Chatbots have turned into the ideal travel buddy. Numerous flights
and hotel groups offer the option of sending messages to their clients ahead of time, either
enabling them to text through their own application or to set up informing channels like
WhatsApp, Messenger, or Facebook.
Disadvantages of Technology in the Hotel Industry
The flood of development and industrialization has contaminated our environment. Let’s
take a case where the exhaust of machines and vehicles affects air quality and damages the
ozone layer.
Furthermore, technologies additionally result in financial issues in families since most of
the technologies are costly similar to computers. Individuals who cannot afford to purchase
this kind of innovation will live stressful lives.
The significance of innovation in the movement and the travel industry is to get data
through research, to help increment the organization’s incomes, to get data from its clients
and other important organizations, gives incredible speed, reaching the viewers who have
physically isolated from the sender and increase availability and receptiveness in an
organization
And the bad part about innovation is that it can cause conflict and stress, can be utilized
effectively, Often ailing insecurity, and can genuinely end business profitability.
Essential Business Tools and Technologies
A business tool is any asset that helps or assists an organization in achieving its stated
aims or objectives. These vary in complexity and importance to an organization. With
technology, business tools have also upgraded in unexpected ways. Below are some of the
tools and technologies that impacted how hospitality businesses run their operations in
this digital age.
Telephone Systems
One of the primary means used for communicating with customers and vendors is the
telephone. More hotels are moving away from analog telephones to Voice over Internet
Protocol (VoIP) telephones, a technology that allows making voice calls using a broadband
Internet connection. An effective hotel phone system is one that helps reduce costs and
increase customer satisfaction.
The following are the must-have phone features for the hospitality industry:
• Auto-attendant - Hotels can rely on the auto-attendant function to handle the bulk of
guest inquiries. With programmable options and menu branches, an auto-attendant
function can help answer questions, manage requests, and, most of all, keep phone lines
from being tied up with basic questions. This way, the business can ensure that potential
clients get addressed and existing customers are served quickly and efficiently.
• Room extensions - Extension calling can match room numbers up to four (4) digits in
some phone systems so that it is easier to use. Programming numbers for one-touch
services so that a guest can connect to the front desk, concierge, housekeeping, or
restaurant with a single number from inside the room, which keeps things simple and
direct.
• DECT handsets - Keeping staff members connected through Digital Enhanced Cordless
Communication (DECT) phones allows them to stay mobile and accessible throughout the
building at all times. This enables them to provide better and faster service no matter the
request.
• Voicemail - Most hotels are expected to provide an integrated voice messaging system for
their guests so they can receive calls and messages even when no operator is available.
Guests may also want to be notified with this voicemail system of text messages or faxes at
the front desk, and messages can show on the room phone with an indicator light. Staff
members can also use this to improve efficiency and leave detailed messages that can be
retrieved at different times of the day, which is very helpful for shift changes and handoffs.
• Call accounting - Call accounting systems to enable properties to resell
telecommunications services to guestrooms, meeting rooms, event spaces, and other
common areas. This feature allows a property to bill guests, track calls, and generate real-
time reports on how the phone system was accessed so that the property management
system can print detailed statements to ease the check-out process.
• Unified messaging - This can be thought of as a universal mailbox. Voicemail and
electronic mail (e-mail) can interact with unified messaging so that a guest can retrieve
voicemail through their inbox and vice versa. This is becoming more common with VoIP
solutions.
• Direct Inward Dial (DID) - With DID, outside callers can call an extension at the property
directly without going through an operator or automated attendant. This eliminates the
need to have a dedicated trunkline for each extension.
• Music on hold - Studies show that music on hold keeps callers in a better frame of mind.
This is also an opportunity for hotels to play promotional messages for callers and highlight
special features.
Video and audio conferencing - While previously only the domain of business travelers,
video and audioconferencing call functions are now desired by leisure travelers, too, so
they can stay connected to family and friends.
Hotel phone systems that provide guests with additional value, boost customer service and
simplify connectivity among staff to operate more efficiently help set certain properties
apart in a highly competitive industry.
Computers, Software, and the Internet
Today, information is the lifeblood of any successful organization. The key to making
information to a company’s advantage is through the use and implementation of the right
computers and software for operations. The computer is essential to business
communication because of e-mail, whereas hotel software allows hotel owners or
managers to simplify their administrative tasks while cutting costs and increasing revenue
at the same time.
The software system is not just important for the day-to-day operations of a hotel, but it
also plays a vital role in the overall guest experience. The following are the latest hotel
management software solutions in hotels:
• Property Management System (PMS) - It is a software suite that assists hotels, resorts,
and similar properties with day-to-day tasks and operations, such as reservations, payment
processing, performance analysis, and inventory management. Aside from automating
operations across the various departments in a hotel, an advanced PMS enables hotel
owners or managers to process e-payment collection and manage room inventory for
accurate allocation. It is also possible to use a PMS to send confirmation e-mails to
customers after they make a booking. This function is part of the front-desk module and
some systems even allow the customer to reserve the room and activities offered by the
hotel.
• Point-of-Sale (POS) System - A POS system functions as a cash register that lets food and
beverage operators ring up sales and keep a record of those transactions. Today, the POS is
often referred to as the “restaurant point of service,” given that it is no longer just about
processing sales. A restaurant POS solution allows operators to use cash management and
integration with payment service providers to process orders and maintain financial
control of their business. A POS can be used in a standalone restaurant or integrated into a
PMS in hotel food and beverage outlets.
• Revenue Management System (RMS) - RMS is a software solution that allows a property
to carry out important revenue management tasks more efficiently and effectively. Its
purpose is to improve pricing strategies in order to sell more rooms at optimal rates. It will
make use of hotel data and its own algorithms (formula) to carry out a real-time analysis of
the state of the market and demand in order to calculate ideal room rates. RMS lowers costs
as it takes into account the room rates during the low and high season. As a result, the hotel
manager can plan and lower costs by avoiding unnecessary expenses.
• Distribution Channel Manager - In the hotel industry, a distribution channel refers to a
chain of intermediaries that a hotel room or hotel service passes through before it reaches
the customer. These chains can be short, such as a direct sale from the hotel to the
customer, or longer, passing through wholesalers, online travel agents, retail travel agents,
or information centers. Distribution channel management, therefore, is the practice of
managing each of these distribution channels, such as managing the rates and booking
restrictions and ensuring the hotel’s inventory is updated across all of the different
channels. A hotel’s distribution channel manager is an online management solution that
allows the centralization of all distribution channels and manages operations connected to
them, all from the same place. Through the use of a distribution channel manager, all
parties involved in the distribution of hotel rooms or other hotel services can gain live
access to key information, such as rates and availability.
• Rate Shopper Software - This hotel software has the benefit of simple graphics and easy-
to-use reporting tools that help hotel owners optimize room rates in line with demand. By
using rate shopper software, a property will be able to obtain real-time data about its
competitors, including their prices and current promotions. In addition to disclosing useful
information about other hotels, this software will also allow a property to keep an eye on
its rankings using track events in its local area and obtaining statistics about the average
prices charged by the hotels in its area. The main benefit of using this software is to
ultimately learn about the local hotel industry in order to stay ahead of the competition.
• Reputation and Review Management Software - Reputation and review management
software is designed to track online users’ feedback on services and products. This
software allows monitoring what guests are saying about a hotel by sending alerts to the
property. The property can then respond to these reviews and resolve the issues quickly.
The system also helps in spreading customers’ positive reviews through relevant online
platforms. Building a reputation with positive reviews is a good thing for hotels as they will
be able to increase their sales this way. Hotels use this software to promote their business
and capture negative customer reviews.
• Hotel App - The use of mobile apps for performing everyday activities has become
common and has led to the rise of hotel apps that provide instant access to many self-
service options. A hotel app is a software application that has been specifically designed to
run on a mobile device such as a smartphone or a tablet. It allows users to access a range of
services or perform a range of different actions. An example of a hotel app is the mobile
check-in app, which reduces the need to provide a front desk service so the staff can focus
on other tasks instead. It helps in saving time during check- ins, communication with guests
before arrival (via the app), and increasing revenue by allowing guests to upgrade their
rooms, book dinner, or tours.
• Online Booking Engine - The goal of every hotel is to sell more rooms and increase profit.
But without an online booking engine, the property will have to rely on phone calls mainly
to make bookings. An online booking system is an essential and effective tool that will
significantly increase bookings as it allows users to make secure reservations on a hotel’s
website. If a hotel is listed on a social media site, the online booking engine can also be used
for making direct bookings. This tool is available 24/7 and gives visitors the flexibility to
book a room whenever they want.
• Website Builder - Every hotel must have a website in order to gain maximum visibility. A
website builder tool helps hotels create a website for their business. There are two (2)
types of website builders: online and offline.
o Offline website builders allow a user to download and install the tool on a computer. The
user can then build a website and upload all the saved files to a Web host (a service that
allows organizations and individuals to post a website or web page onto the Internet).
o Online website builders are just as easy to use as offline ones. These allow beginners or
experienced hotel owners to create a website within a few minutes using dragging and
dropping elements. Many website builders have a special template for hotels, which helps
hotel owners create a hotel website in no time.
Benefits of Using Hotel Management Software
In the digital age, hotel software is used for a range of purposes. Below are the advantages
associated with the use of hotel management software solutions within a property:
• Simplified Processes – This is one of the major advantages of using hotel management
software solutions. From automating many of the distribution tasks to generating financial
reports in an instant, software applications can make almost everything more efficient.
Automation allows certain hotel operations to be carried out even when staff is not
available to intervene manually. Consequently, the ability to share data across the property
and even across hotel chains can help remove barriers. Software solutions also have the
potential to reduce human errors.
• Reduced Costs - Even though hotel software solutions require initial financial
investments, these applications and systems can lead to significant cost-savings in the long
run. This is because less human involvement is required in many day-to-day processes,
while money can also be saved in some other areas. Labor costs can be reduced through
automation by reducing the number of employees needed and the number of hours they
work or by simply gaining from increased productivity in other areas.
• Increased Revenue - In addition to money savings, hotel management software can also
help in increasing the amount of revenue. For instance, revenue management systems
allow properties to optimize pricing and distribution, which helps them anticipate demand
accurately. Distribution channel managers allow properties to manage availability and
visibility across online distribution channels, while demand for hotel rooms can also be
increased through the effective use of reputation management programs.
• Improved Customer Experience - Many PMS solutions offer point-of-sale options, making
payment for hotel services easier. Smart hotel systems also allow for things like heating, air
conditioning, and lights to be optimized automatically, increasing customer comfort and
satisfaction.
• Competitive Advantage - One of the most substantial reasons why properties should
utilize hotel management software solutions is the potential to gain a competitive
advantage over competitors. Many software packages will provide valuable real-time
industry insights, allowing properties to be more competitive in terms of room rates or
package discounts.